Speedy, the tools, equipment and plant hire services company, operating across the construction, infrastructure and industrial markets, announces results for the six months ended 30 September 2015 and confirms that the Group expects to deliver a result for the full year in line with the Board’s expectations, as detailed in the Company’s trading update published on 28 September 2015.
Headline numbers
| 6 Months ended 20 September 2015 |
6 Months ended 30 September 2014 |
|
| (£m) | (£m) | |
Group revenue |
165.0 |
189.3 |
| UK and Ireland | 155.2 | 176.3 |
| International | 9.8 | 13.0 |
| Group EBITDA1 | 25.6 | 37.5 |
| Group EBITA1 | 4.5 | 13.8 |
| UK and Ireland | 7.0 | 20.3 |
| International | 0.1 | (3.3) |
| Adjusted PBT1 | 2.0 | 10.3 |
| Earnings per share1 | 0.29p | 1.39p |
| ROCE (%)1,2 | 5.2% | 8.4% |
| ROCE (excluding international)1,2 | 6.3% | 11.6% |
| Net debt | 102.6 | 104.4 |
| Interim dividend (pence per share) | 0.30p | 0.30p |
1 Before amortisation (£1.3m) and exceptional costs (£14.2m)
2 Based on a rolling 12 month period
Operational Update
Remedial actions to address legacy performance issues are starting to deliver results
- Reductions in administrative costs expected to deliver full year savings of c.£13m from prior year
- Redistribution of assets across depot network improving asset availability
- Ongoing IT system upgrades providing enhanced management information and an improved customer experience
Programmes to improve customer retention and acquisition being implemented
- Emphasis on improved customer service provision
- Focus on innovation and differentiation
- Sales function aligned to better address the needs of both Strategic and SME customers
Full benefits of remedial actions will be realised over the medium term
Commenting on the results Russell Down, Chief Executive, said:
“Following a disappointing and challenging start to the year, reflected in the results we are announcing today, we are beginning to see the benefits of the remedial actions put in place to address the various legacy issues.
These are early days in the Group’s recovery and the full benefits will only be realised over the medium term. However, remedial actions implemented to date have started to stabilise our revenue base and we are expecting to see an improvement in the second half.
Whilst our markets remain competitive, Speedy remains a fundamentally good business which in a more lean, efficient and customer-focussed form, has the potential to once again deliver sustainable profitable growth.”
